How much do licensing agents and invention brokers charge for their services?

Reputable licensing agents earn commissions or finder’s fees only if a deal is concluded. “…Bobby Toole, of the United Inventors Association of the USA, says inventors can benefit from the services of a broker familiar with a particular industry's customs and practices. But reputable brokers make money in the form of a commission or finder's fee, and only in the event a deal is concluded.” (Caryne Brown, “Making money making toys: how black inventors are bringing innovative ideas to the toy market”, Black Enterprise, November 1, 1993)

50% of the deal. “As [licensing agents for inventions], we take the onslaught of submissions and allow the cream to rise to the top. …Our normal deal is to represent the item for no less than two years, this being the minimum time needed to cover the market and present the item to the appropriate potential licensee/partners. We split each deal on a 50/50 basis with the inventor, but different split arrangements can apply when working with another professional development group.” Product licensing agent. Patent licensing agent. (Howard Jay Fleischer, “From idea to reality: the next great product idea could walk in your door tomorrow,” Candy Business, September 1, 2004)

50% of royalty payments for toy inventions. “Licensing agents whom they approached with the prototype [for David Walker’s Walla Balla invention] wanted one-half of all royalties from a licensing sale to a major toy company.” (Caryne Brown, “Making money making toys: how black inventors are bringing innovative ideas to the toy market”, Black Enterprise, November 1, 1993)

35% share of royalties. “In addition to helping people online, the sisters [inventors Barbara Russell Pitts and Mary Russell Sarao] recently started directly helping others get their inventions licensed. Unlike many invention promotion companies, they don't charge an upfront fee. They will, however, take a 35 percent share of any royalties that they bring about. If the sisters don't have appropriate contacts for a product, they refer the inventor to licensing agents and promotion companies with legitimate reputations.” (Cheryl Hall, “Sisters who took an idea to market want to help others do the same,” The Dallas Morning News via Knight-Ridder/Tribune NewsService, July 13, 2003) Peruse reader book reviews of the sisters, Barbara Russell Pitts and Mary Russell Sarao, book Inventing on a Shoestring Budget.

Are you looking for help licensing your invention? If you are, Inventors Workshop, a nonprofit organization that has been providing inventor help services for more than 35 years, may be able to help you out. You can contact them at Invention-Licensing-Help.org, Or call them at 805-735-7261

10% to 15% charged by invention licensing agents. “Chuck Van Breeman, a professional inventor in Clearwater and a consultant for companies that want new products developed, said ICTT's fees are good for entrepreneurs. ‘They're below what others charge," he said. "Brokers charge 10 percent to 15 percent.’’ (Jane Meinhardt, “Inventor helping others to create ideas,” Tampa Bay Business Journal, August 22, 2003)

5% to 8%. Paul L. Simmons, founder and former chief executive officer of Nutraceutical Clinical Laboratories International Inc., is the research and development director of the International Center for Technology Transfer, Inc., (ICTT). “ICTT contracts with inventors and works closely with the Tampa Bay Inventors Council, a group that educates inventors. The company [ICTT] receives a percentage of investment in a product, usually 5 percent to 8 percent, Simmons said, declining to reveal financial details of the new company.” (Jane Meinhardt, “Inventor helping others to create ideas,” Tampa Bay Business Journal, August 22, 2003)

$13,000. Fee charged to inventors by San Francisco-based Inventors' Publishing and Research (IP&R). "After paying IP&R a one-time fee of $13,000, [Elaine] Montoya's [Wonderland Box] invention is now available in a few catalogs and stores, and it has sold 1,000 units so far. IP&R projects increased distribution and sales next year of around 30,000 units. Montoya understands there are no guarantees but expects to make her investment back soon." (Jeffrey Gangemi, “Prototyping Gives Inventions a Boost,” Business Week, November 13, 2006)

Woefully low success rate for invention service providers. “Ultimately, the value any invention service provider brings to the inventor begins with the inventor's selection of the right people for the job at hand. THAT begins with understanding specific titles, skill-sets and services being offered by these service providers. Whether scam or real, it would appear that there is still a woefully low 'success rate' among them.” (Andy Gibbs, ipFrontline.com, “Invention Development, Licensing and Promotion - Hiring the Right Person For The Job”, Thursday, July 15, 1999)